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401K Options to help you and your family if impacted by COVID-19Principal Financial Group would like to thank everyone, especially those on the frontlines, for your constant dedication and commitment to our patients. Below is some information from Principal Financial surrounding emergency access to 401K plan loans due to COVID-19 hardships. Please see the below options. If you have further questions, please contact Principal on (800) 547-7754 or visit or Human Resources on 775 445 8010. Legislation, called the CARES Act, was recently enacted, and it offers you some assistance if you or a family member have been impacted by COVID-19. What’s available to you is listed below, as well as the most common questions we’ve been receiving.What relief is available from the CARES Act?COVID-19 withdrawal option (tax favored):This special withdrawal option is available, and you can find the request form when you log in to on the landing page. The special withdrawal option will be available between now and through Dec. 30, 2020. Here’s what it means for you:The typical 10% penalty tax that applies to early withdrawals doesn’t apply. The standard 20% federal tax withholding does not apply, but 10% withholding will be unless you decide otherwise.Income taxes for the distribution can be spread over 3 years. Maximum amount available for an individual to withdraw is up to $100,000 (cumulative maximum amount which applies across all sources), and you may be permitted to recontribute the amount within 3 years (as a rollover) without regard to annual contribution limits. You’ll need to self-certify (by checking a box on the request form) that you’ve been affected by COVID-19 to be eligible for a distribution. You must certify you have adverse financial consequences from the COVID-19 pandemic, or you, your spouse, or dependent have been diagnosed with COVID-19 or SARS-CoV-2 by a test approved by the Centers for Disease Control and Prevention.Loan provision changes:We’ve made some changes to our plan’s loan provisions, including:Increased limits for new loan requests to 100% of vested account balance, up to $100,000, for 180 days, beginning March 27, 2020. If you have an existing loan from the retirement plan, the plan loan payments due between now and Dec. 31, 2020, are delayed for one year, and this period is disregarded from the loan’s term. Subsequent payment due dates and amounts will be adjusted to reflect the delay period and any additional accrued interest. In order to qualify, you must certify (by checking a box on the request) that you have experienced certain adverse financial consequences from the COVID-19 pandemic or you, your spouse, or dependent have been diagnosed with COVID-19 or SARS-CoV-2 by a test approved by the Centers for Disease Control and Prevention.Required Minimum Distributions (RMD) waiver:There is a temporary waiver of the RMD rules for distributions required in 2020 for defined contribution plans. An additional year is allowed for beneficiaries to complete their distributions if they are taking distributions under the 5-year rule. Here’s how you can request relief from the CARES Act:Log onto your account at or call Principal? at (800) 547-7754. As always you should consider the information described above before deciding to take any action including to start, continue, or change your salary deferral rate. Additional Resources:We’re all taking steps to manage our physical health during this unprecedented time. Given the impact it is having on our economy; you may have found yourself thinking about your financial health as well. Check out Managing your money during COVID-19, an on-demand seminar from Principal?, to hear practical tips and ideas to help you answer some of the most common questions they’re hearing from participants just like you: - What COVID-19 related relief is available?- How might I reduce my expenses now?- If needed, is it better to dip into my savings or borrow??- What does market volatility mean to me and my retirement savings? - What else can I be doing right now?They’ll also highlight some resources available to you through Principal Milestones including: Coronavirus & Your Financial Health + money management resources powered by EnrichWill & legal document resources powered by ARAG?Answers to some of the common questionsWho is eligible for a COVID-19 related withdrawal (tax favored) or loan?You will be asked to self-certify that you meet one of the below requirements: You’ve been diagnosed with virus SARS-CoV-2 or with coronavirus disease 2019 (COVID-19) by a test approved by the Centers for Disease Control and Prevention.Your spouse or dependent (as defined in Section 152 of the Internal Revenue Code of 1986) has been diagnosed with the virus or disease by such a test.You have experienced certain adverse financial consequences from the COVID-19 pandemicHave plan loan limits been adjusted?Yes, but only if you’ve been impacted by COVID-19, the plan loan limit has increased to 100% of your vested account balance, up to $100,000. This only applies to loans made for 180 days following the March 27th enactment of CARES and is only for individuals who meet the same COVID-19 related conditions outlined above.What about outstanding loans?If you’ve been impacted by COVID-19, scheduled plan loan repayments due from March 27, 2020 (the enactment of CARES) through Dec. 31, 2020, may be delayed for up to one year and this period can be disregarded from the loan’s term. Subsequent payment due dates and amounts will be adjusted to reflect the delay period and any additional accrued interest.If I take a COVID-19 withdrawal can I repay the amount into a qualified retirement plan?Yes, if you’ve been impacted by COVID-19 only. You have three years from the day after the withdrawal was received to repay the amount into a qualified retirement plan (or any other plan or IRA that can accept rollovers). The withdrawal will be taxable if it’s not repaid, but the taxes can be repaid over a three-year period, unless the participant otherwise elects.Does my organization need to verify that I qualify for a COVID-19 withdrawal or loan?No. If you’ve been impacted by COVID-19, you can self-certify for eligibility when requesting the loan or withdrawal. This may be done via a form provided at or for loans by calling Principal at 800-547-7754.Have there been adjustments made for Required Minimum Distributions (RMDs)?Yes. The CARES Act waives RMDs for the 2020 calendar year. If an RMD has already been received during 2020, you may be able to request an indirect rollover back into the plan as long as it’s within 60 days of the original RMD payment and the plan allows for such rollover in.Is there a limit to the number of loans I can take?Yes, existing plan provisions apply. The 401(k) Plan(s) currently limit the number of loans to one outstanding and two loans approved in a 12-month period. If you’ve been impacted by COVID-19, you could also consider taking a withdrawal, which may be repaid over the next three years.What are my options if I am terminated or furloughed?If you have experienced an actual termination of employment or job loss, you may be eligible for a distribution of your vested account balance.You would be permitted to take a COVID-19 withdrawal (If the plan permits) and you meet the requirements to be eligible.The timing and options related to this event will be determined by your plan document.We must first receive notification of your termination from your plan sponsor.Once that is received, you can begin the process by logging on to our participant website or you may want to contact our Participant Contact Center 800-547-7754 for assistance.If you have not been terminated, but rather are having hours reduced, furloughed, and/or subject to a layoff or temporary leave of absence then you may still be considered an employee of your employer and not eligible for a distribution from the plan due to a separation of service. However, you still may be eligible to either take a loan or another qualified plan withdrawal from your employer’s plan, if allowed.You would be permitted to take a coronavirus-related distribution (If the plan permits) and you meet the requirements to be eligible.Qualified plan withdrawals may include hardship withdrawals (see question below) or other in- service withdrawal options such as attaining age 59 ?.Since plans are not all the same, you will need to log on to your account by visiting or contact Principal (800) 547-7754 to determine what options may be available to you. Are there fees for taking a COVID-19 withdrawal or loan?Related withdrawal and new loan set-up fees you pay have been waived through Sept. 30, 2020, by Principal. Ongoing loan maintenance fees still apply. Distribution fees you pay on hardship withdrawals or special COVID-19-related withdrawals (tax-favored) have also been waived by Principal through Sept. 30, 2020.Can this withdrawal/distribution be used for a rollover if I just want my money out of my plan? No. These withdrawal provisions of the CARES Act are intended to help those most in need of accessing retirement funds to get through a financial hardship, not to be able to roll the funds over to another product. It will not be able to be rolled over directly. But if you use the three-year payback option, or recontribute the withdrawal amount into another qualified account, you may be able to rollover indirectly.Can this be used if my spouse has lost their income? The CARES Act defines the impacted individual as a participant who has lost income and based on our interpretation does not mention anything about the spouse’s loss of income, so this would likely not qualify. However, if a spouse has been diagnosed with COVID-19 or SARS-CoV-2 it would qualify. How will I know when this is available? Our organization adopted these changes on April 10, 2020 so you should see the option available on the next business day when you log in to .The subject matter in this communication is educational only and provided with the understanding that Principal? is not rendering?legal, accounting, investment advice or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.Insurance products and plan administrative services provided through Principal Life Insurance Co. Securities offered through?Principal Securities, Inc., 800-547-7754,?member SIPC?and/or independent broker-dealers. Principal Life, and Principal Securities are members of the Principal Financial Group?, Des Moines, Iowa 50392.? 2020 Principal Financial Services, Inc.1145556-042020The value-added resources provided through ARAG Services, LLC (ARAG?) and iGrad, Inc. (Enrich) are not a part of any insurance products and plan administrative services provided through Principal Life Insurance Co or affiliated with any company of the Principal Financial Group?. All resources may be changed or canceled at any time. The use of resources provided by ARAG Services, LLC or Enrich should not be considered a substitute for consultation with an attorney or advisor. Principal? is not responsible for any loss, injury, claim, liability, or damages related to the use of the ARAG Will & Legal Document Center or Enrich resources.Please remember that the ARAG legal documents are accurate and useful in many situations. Whether or not the document is right for you and your situation depends on your circumstances. If you want specific advice regarding your situation, consult an attorney.Enrich and ARAG Services, LLC are not an affiliate of any company of the Principal Financial Group. ................
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